Published on 7/8/2021 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $25 million trigger callable contingent yield notes on five tech stocks
By William Gullotti
Buffalo, N.Y., July 8 – GS Finance Corp. priced $25 million trigger callable contingent yield notes due July 3, 2024 linked to the common stocks of Amazon.com, Inc. and Apple Inc., the American depositary shares of Alibaba Group Holding Ltd. and the class A common stocks of Alphabet Inc. and Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at the rate of 26.2% per year if each stock closes at or above its coupon barrier price, 75% of the initial price, on the relevant determination date.
The notes will be callable at par plus coupon on quarterly evaluation date.
If the notes are not called and each stock finishes at or above 75% of its initial price, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the least-performing stock finishes below its initial price.
Goldman Sachs & Co. LLC is the underwriter with UBS Financial Services Inc. as selling agent.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield securities
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Apple Inc. (Symbol: AAPL), Alibaba Group Holding Ltd. (Symbol: BABA), Alphabet Inc. (Symbol: GOOGL), Facebook, Inc. (Symbol: FB)
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| Amount: | $25 million
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| Maturity: | July 3, 2024
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| Coupon: | 26.2% per year, payable quarterly if each stock closes at or above its coupon barrier the relevant observation date
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus the final coupon; otherwise, 1% loss for every 1% that least-performing stock finishes below its initial price
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| Call option: | At par plus coupon on any quarterly evaluation date
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| Initial prices: | $3,440.16 for Amazon, $136.96 for Apple, $226.78 for Alibaba, $2,441.79 for Alphabet, $347.71 for Facebook
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| Coupon barriers: | $2,580.12 for Amazon, $102.72 for Apple, $170.09 for Alibaba, $1,831.34 for Alphabet, $260.78 for Facebook; 75% of initial prices
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| Downside thresholds: | $2,580.12 for Amazon, $102.72 for Apple, $170.09 for Alibaba, $1,831.34 for Alphabet, $260.78 for Facebook; 75% of initial prices
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| Pricing date: | July 1
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| Settlement date: | July 7
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| Underwriter: | Goldman Sachs & Co. LLC with UBS Financial Services Inc. as selling agent
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| Fees: | 0.5%
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| Cusip: | 36261B210
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